I still remember the day my electricity bill dropped from ₹4,200 to just ₹830. Not because I stopped using appliances, but because I finally got my net metering approved after a frustrating 38-day wait.
That experience taught me something valuable: solar net metering in India is a game-changer—but only if you know what you’re getting into.
Most people I talk to think net metering is just “installing solar panels and watching your bill disappear.” The reality? It’s a specific regulatory process with real costs, approval delays, eligibility rules, and potential rejections that nobody warns you about upfront.
In this guide, I’ll walk you through everything I learned about solar net metering in India—from how it actually works to the exact approval process, real costs (including hidden fees), common delays, eligibility criteria, and mistakes that can derail your entire solar investment.
By the end, you’ll know whether net metering makes sense for your home, what to expect during the approval process, and how to avoid the pitfalls that cost me weeks of unnecessary stress.
What Is Solar Net Metering & How It Works in India
Let me explain this in the simplest way possible.
What Is Net Metering in Simple Terms (With Example)
Net metering is a billing mechanism where your electricity meter can run both forward and backward.
Here’s what that means in practice:
- During the day: Your solar panels generate more electricity than you use. The excess power flows back to the grid, and your meter runs backward—giving you credits.
- At night: You use electricity from the grid like normal. Your meter runs forward—consuming those credits you earned earlier.
Think of it like a bank account for electricity. You deposit units during sunny hours and withdraw them when your panels aren’t producing.
Real example: My 5kW system generates about 22 units on a typical sunny day. I use maybe 8 units during daytime. The remaining 14 units go to the grid as credits. At night, when I use 12 units, I’m only billed for the difference if I’ve exhausted my banked credits.
The key difference from battery backup? You’re not storing electricity in physical batteries. You’re using the grid itself as your virtual battery.
[Visual suggestion: Simple diagram showing solar panel → home → grid flow with meter running backward/forward]
How Net Metering Works for Rooftop Solar in India
The process happens automatically once your net meter is installed:
- Daytime (solar generating): Your panels produce power. First, it supplies your home’s immediate needs. Any surplus automatically flows to the grid through your net meter.
- Nighttime or cloudy days (solar not generating): You draw power from the grid like any regular household.
- Monthly billing: Your DISCOM (Distribution Company) calculates:
- Total units you exported to the grid
- Total units you imported from the grid
- Net consumption = Import – Export
You’re only billed for the net consumption. If you exported more than you imported, those excess units typically carry forward to the next month (though policies vary by state).
Important note: The meter replacement is mandatory. Your existing meter can only count in one direction. A bidirectional net meter is required to track both import and export.
What Happens to Excess Solar Power?
This is where state policies differ significantly.
Most common scenario (Net Metering states):
- Excess units carry forward month-to-month
- Annual settlement happens once a year
- If you have surplus units at year-end, some states pay you at a predetermined rate (often lower than retail tariff)
- Some states simply reset your account to zero with no payment
Example from my state (Karnataka): Excess units carry forward indefinitely throughout the year. At the end of the financial year, surplus units are compensated at ₹1.05 per unit—much lower than the ₹6.50 I pay for grid power.
Gross Metering scenario (some states):
- All solar generation is exported at a fixed tariff
- You buy back electricity at retail rates
- Different mechanism altogether (covered in detail later)
[Internal link opportunity: State-wise solar policies comparison page]
Net Metering vs Battery Backup (Quick Comparison)
I get asked this constantly: “Why not just use batteries?”
Here’s the honest comparison:
| Factor | Net Metering | Battery Backup |
|---|---|---|
| Initial cost | No extra battery cost (₹0) | Battery adds ₹70,000–₹2,50,000 |
| Power backup during outages | No (grid-dependent) | Yes (works during blackouts) |
| Monthly savings | Maximum (use all solar power) | Lower (battery losses ~15%) |
| Maintenance | Minimal | Battery replacement every 5-7 years |
| Lifespan | 25+ years (system life) | Battery: 5-10 years |
Why most Indian homes still prefer net metering:
The math is simple. A 5kW system costs around ₹2,50,000. Adding battery backup increases that to ₹3,50,000–₹4,00,000. That extra ₹1,00,000–₹1,50,000 takes years to recover in savings, especially when the batteries themselves need replacement every 5-7 years.
Net metering makes sense if:
- You have a stable grid supply in your area
- Your priority is maximum ROI, not backup power
- You’re okay being grid-dependent
Batteries make sense if:
- Frequent power cuts are a reality
- You need a guaranteed backup
- You can afford the higher upfront investment
[Visual suggestion: Comparison infographic showing cost breakdown over 10 years]
Net Metering Process After Solar Installation (Step-by-Step)
This is where theory meets reality—and where most people get stuck.
Step 1 – Solar Installation & DISCOM Intimation
Your solar installer completes the rooftop installation. The system is technically ready to generate power, but you cannot export to the grid yet.
What happens at this stage:
Your installer (or you) must inform your DISCOM that a solar system has been installed. This is often called a “completion intimation” or “readiness certificate.”
Key documents usually needed:
- Proof of ownership (electricity bill, property documents)
- Solar system technical specifications
- Single-line diagram (SLD) of the solar installation
- Installer credentials and certifications
- Safety compliance certificates
Timeline: This intimation should happen within 7-15 days of installation completion, depending on state regulations.
My experience: My installer submitted this online through the DISCOM portal. I received an auto-generated acknowledgement within 24 hours with an application number.
[Internal link opportunity: Net Metering Documents Checklist page]
Step 2 – Net Metering Application Submission
This is the formal application for net metering approval.
What’s different from Step 1: The earlier intimation was just informing them. This is the official request for meter replacement and net metering activation.
Application submission options:
- Online: Most DISCOMs now have web portals (BESCOM, TATA Power, Adani, etc.)
- Offline: Physical submission at DISCOM office (still required in some areas)
Documents typically required:
- Net metering application form (DISCOM-specific format)
- Copy of electricity bill (last 3-6 months)
- Proof of ownership/rent agreement
- Solar installation completion certificate
- Single line diagram
- Panel datasheet and inverter specifications
- Installer’s electrical license
- Test reports (some states require certified testing)
- Passport-size photographs
- ID proof (Aadhaar, PAN)
Application fees: Varies by state and system capacity. In my case (Karnataka, 5kW), it was ₹1,500.
Pro tip: Take clear photos/scans of every document you submit. You’ll need them for follow-ups.
[Internal link opportunity: Solar Installation Process Guide]
Step 3 – DISCOM Inspection & Meter Replacement
Once your application is processed, DISCOM schedules a site inspection.
What they inspect:
- Physical verification of installed capacity
- Safety mechanisms (earthing, MCB, isolators)
- Panel mounting and structural integrity
- Inverter specifications
- Compliance with technical standards
- Transformer capacity (if it’s a shared transformer)
What happens after approval:
If the inspection clears, DISCOM issues a work order for net meter installation. This can be handled by:
- DISCOM’s own team
- DISCOM-empanelled vendors
- Your installer (if they’re authorised)
Meter replacement cost: This is where costs add up (covered in detail in the cost section). Expect ₹3,000–₹10,000 depending on your meter type and location.
Timeline: Inspection typically happens within 15-30 days of application. Meter installation follows 7-15 days after clearance.
My experience: The DISCOM inspector arrived 22 days after my application. He spent about 20 minutes checking the installation, took photos, and left. The meter replacement happened 11 days later—total elapsed time: 33 days.
Step 4 – Meter Activation & First Net Metering Bill
The new bidirectional meter is installed, but it’s not automatically “live” for net metering.
Activation process:
- DISCOM records the meter reading at installation time
- Your account is updated in their billing system
- Net metering officially starts from this date
Your first bill: This is when you’ll see the difference. Instead of just consumption charges, you’ll now see:
- Units imported from grid
- Units exported to grid
- Net consumption (import minus export)
- Charges based on net consumption
Important: The first bill might still look normal if it covers a period before net metering was activated. The real change shows up in the second bill.
What Changes in Your Electricity Bill After Net Metering
Let me show you the exact changes I noticed:
Before net metering:
- Monthly consumption: 620 units
- Average bill: ₹4,200 (including fixed charges)
After net metering:
- Import from grid: 385 units
- Export to grid: 350 units
- Net consumption: 35 units
- Bill: ₹830 (mostly fixed charges + minimal energy charges)
New billing components:
- Import units (what you drew from grid)
- Export units (what you sent to grid)
- Net units (import – export)
- Fixed charges (unchanged—you still pay these)
- Energy charges (only on net units)
- Duty/taxes (on net consumption)
What doesn’t change:
- Fixed charges remain the same
- Meter rent (now for the net meter)
- Electricity duty
[Visual suggestion: Before/after bill comparison image]
Net Metering Approval Timeline, Delays & Real Experiences
This is the section I wish I’d read before starting my journey.
Official Net Metering Approval Timeline by DISCOM
Most state electricity regulations specify timelines, but reality often differs.
Typical official timelines (from application to meter installation):
- Best case: 15-30 days (Delhi, Maharashtra with online systems)
- Average case: 30-45 days (Karnataka, Tamil Nadu, Gujarat)
- Worst case: 60-90 days (some UP, Bihar, Rajasthan areas)
State-specific official timelines:
- Delhi (BSES, TATA Power): 30 days
- Maharashtra (MSEDCL): 30 days
- Karnataka (BESCOM, MESCOM): 45 days
- Gujarat (DGVCL, PGVCL): 30 days
- Uttar Pradesh (various DISCOMs): 45-60 days
- Tamil Nadu (TANGEDCO): 45 days
Source for updated timelines: Most DISCOM websites publish these under their net metering policies. Check your DISCOM’s official portal or relevant State Electricity Regulatory Commission (SERC) orders.
[External link suggestion: Link to major DISCOM net metering policy pages – BESCOM, BSES, MSEDCL, etc.]
Real Experience: Net Metering Approval Delays in India
Let me share real stories from solar owners I’ve spoken with:
Case 1 – Mumbai (TATA Power): Application submitted online in January. Inspection happened within 18 days. Meter installed 9 days later. Total: 27 days. This is rare and smooth.
Case 2 – Bengaluru (BESCOM): Application in March. No response for 35 days. Multiple follow-ups. Inspection finally happened on day 41. Meter installed on day 53. This is more typical.
Case 3 – Lucknow (PVVNL): Application in October. Inspection scheduled after 52 days. The inspector cited “transformer capacity issue.” Required additional approval from the division office. Meter installed after 87 days total. Frustrating but not uncommon in tier-2/3 cities.
Case 4 – Pune (MSEDCL): Application approved, inspection cleared, but meter installation delayed by 31 days because “vendor not available.” The system is generating power but is unable to export. The worst kind of delay—technical approval is complete, but operational approval is pending.
Common patterns I’ve noticed:
- Urban metros with digitised systems: 25-40 days typically
- State capitals and major cities: 35-55 days
- Smaller towns and rural areas: 50-90 days
- Peak season (Feb-May): Add 10-20 days to these estimates
Why Net Metering Gets Delayed (Real Reasons)
After talking to installers, DISCOM staff, and dozens of solar owners, here are the actual reasons for delays:
1. Transformer capacity issues:
This is the #1 technical reason for delays. If the local transformer serving your area is already operating at 60-70% capacity, adding new solar capacity might overload it during peak generation hours.
What happens: Your application gets sent to the planning/technical department for feasibility review. This can add 15-30 days easily.
Solution: Your installer should check transformer capacity before installation. This is rarely done proactively.
2. DISCOM vendor coordination:
Many DISCOMs outsource net meter installation to empaneled vendors. These vendors often have backlogs, especially during peak solar installation seasons (January-April).
What happens: Your inspection clears, but the meter installation is delayed because “vendor will come next week” for 3-4 consecutive weeks.
Solution: Ask your DISCOM if you can use your own installer (if they’re empaneled) to speed things up.
3. Document issues:
Incomplete or incorrect documentation is surprisingly common. Missing signatures, wrong form versions, expired installer licenses—all can send your application back to square one.
What happens: Your application gets rejected or put “on hold” until documents are corrected.
Solution: Triple-check every document before submission. Use a checklist.
[Internal link opportunity: Net Metering Documents Checklist]
4. DISCOM staffing and backlog:
This is the unspoken reality. Many DISCOM offices are understaffed, especially in net metering departments. During peak season, backlogs build up fast.
What happens: Your application sits in a queue. No technical issue—just bureaucratic delay.
Solution: Persistent but polite follow-ups. Use official channels (email, grievance portals) to create a paper trail.
5. Systemic delays (no specific reason):
Sometimes there’s genuinely no reason. Your file is just moving slowly through the system.
What happens: Standard processing time stretches from 30 days to 50+ days for no clear reason.
Solution: Escalation (covered next).
What You Can Do If Net Metering Is Delayed
Here’s my practical escalation checklist:
Week 1-3 (within official timeline):
- Wait patiently
- Track your application status online if possible
- Keep application number handy
Week 4-5 (approaching deadline):
- Call DISCOM customer care and note the interaction reference number
- Email the net metering department with your application details
- Visit the DISCOM office if possible for status update
Week 6-8 (beyond official timeline):
- File a formal grievance: Most DISCOMs have online grievance portals
- Escalate to nodal officer: Every DISCOM has a designated officer for solar/net metering complaints
- CC your emails to senior officials: Find the Executive Engineer (EE) or Superintending Engineer (SE) email IDs
Week 9+ (severe delay):
- Consumer grievance forum: File a complaint with your state’s Consumer Grievance Redressal Forum (CGRF)
- Electricity Ombudsman: If CGRF doesn’t resolve it, escalate to the Ombudsman
- Social media: Tag your DISCOM on Twitter/X with your complaint number (surprisingly effective)
- RTI application: File an RTI asking for specific reasons for delay and timeline for resolution
Pro tips from my experience:
- Always communicate via email—creates a paper trail
- Be polite but firm in your follow-ups
- Reference the specific regulation/order that mandates the timeline
- Note down every interaction (date, time, person’s name, reference number)
[External link suggestion: Link to state-wise CGRF and Ombudsman contact pages]
Net Metering Cost in India (Meter, DISCOM Charges & Hidden Fees)
Let’s talk money—the part installers often gloss over.
Net Metering Cost Including Meter & DISCOM Charges
Here’s the complete cost breakdown for net metering approval:
1. Net meter cost:
- Single-phase meter: ₹3,000–₹5,500
- Three-phase meter: ₹8,000–₹12,000
Who pays: Varies by state. In some states, DISCOM subsidizes part of the meter cost. In others, you pay the full amount.
2. Meter testing charges:
- ₹500–₹2,000 depending on meter type
- Required in most states before installation
3. Application/processing fee:
- ₹500–₹2,500 depending on system capacity and state
- Non-refundable
4. Site inspection charges:
- Usually ₹0 (included in DISCOM process)
- Some states charge ₹500–₹1,000
5. Installation/labor charges:
- If DISCOM does it: Often included in meter cost
- If vendor does it: ₹1,000–₹2,500 extra
6. Security deposit (refundable):
- Some DISCOMs require this: ₹2,000–₹5,000
- Refunded when you close the connection or move
My total cost (5kW, Karnataka, BESCOM):
- Net meter (single-phase): ₹4,200
- Application fee: ₹1,500
- Testing: ₹800
- Installation: Included
- Total: ₹6,500
Typical range for most homeowners:
- Small systems (1-3 kW): ₹4,000–₹7,000
- Medium systems (3-5 kW): ₹6,000–₹10,000
- Larger systems (5-10 kW): ₹10,000–₹18,000
State-Wise Cost Variations (Why It’s Not Uniform)
Net metering costs vary significantly because each state has its own regulations.
High-cost states:
- Uttar Pradesh: ₹8,000–₹15,000 (higher meter costs, additional security deposit)
- West Bengal: ₹7,000–₹12,000
- Rajasthan: ₹6,500–₹11,000
Moderate-cost states:
- Karnataka: ₹5,000–₹9,000
- Maharashtra: ₹5,500–₹10,000
- Tamil Nadu: ₹5,000–₹9,500
Lower-cost states:
- Gujarat: ₹4,000–₹7,500 (some subsidies available)
- Delhi: ₹3,500–₹6,500 (partial subsidy on meters)
- Haryana: ₹4,500–₹8,000
Why the variation:
- Different DISCOM pricing structures
- State-specific subsidy schemes
- Vendor competition (or lack of it)
- Three-phase vs single-phase requirements
[Internal link opportunity: State-wise solar policies and costs comparison page]
Hidden Costs Installers Don’t Explain Clearly
Beyond the official charges, watch out for these:
1. Annual meter calibration/testing:
Some states require periodic meter testing (every 2-5 years). This can cost ₹1,000–₹2,500 each time. Most installers never mention this.
2. Structural changes to meter board:
If your existing meter board doesn’t have space for additional equipment (isolators, MCBs), you might need modifications. Cost: ₹1,500–₹4,000.
3. Earthing pit upgrade:
Older homes often have inadequate earthing. Solar systems require proper earthing for safety. Upgrading earthing: ₹2,000–₹5,000.
4. Grid synchronization equipment:
Some DISCOMs require additional relays or protective equipment beyond the basic inverter. Cost: ₹3,000–₹8,000 (inverter-dependent).
5. “Processing fee” or “facilitation charges” by installers:
Some installers charge ₹2,000–₹5,000 extra for “handling” the net metering application on your behalf. This is negotiable—you can do it yourself.
My recommendation: Get a written, itemized quotation that specifically breaks down:
- Solar system cost
- Net metering charges
- Installation charges
- Any potential additional costs
Don’t accept vague “all-inclusive” quotes without breakdown.
Does Subsidy Affect Net Metering Cost?
This confuses a lot of people.
The short answer: Solar subsidy (PM Surya Ghar Yojana or state schemes) typically covers the solar panel system cost—not the net metering charges.
How it works:
- Subsidy covers: Solar panels, inverter, mounting structure, installation labor
- Subsidy does NOT cover: Net metering application fees, meter costs, DISCOM charges
Example:
- 3kW solar system cost: ₹1,80,000
- Central subsidy (₹78,000 for 3kW under PM Surya Ghar)
- Your cost for system: ₹1,02,000
- Net metering charges (separate): ₹6,500
Exception: Some states like Gujarat and Delhi have separate schemes that subsidize net meter costs for residential users. Check your state’s DISCOM policy.
Important note: Subsidy is disbursed after installation and net metering approval, not upfront. You’ll need to pay the full amount initially and then claim reimbursement.
[External link suggestion: PM Surya Ghar Yojana official portal – solarrooftop.gov.in]
[Internal link opportunity: Solar subsidy application guide page]
Eligibility Rules, Rejections & Technical Limits
This is the “fine print” section that can save you from wasted effort.
Who Is Eligible for Net Metering in India?
Eligible consumer categories:
1. Residential consumers:
- Individual houses
- Independent floors
- Apartments (with individual meters)
2. Commercial establishments:
- Shops, offices, showrooms
- Restaurants, hotels
- Malls, commercial complexes
3. Institutional:
- Schools, hospitals
- Government buildings
- Religious institutions
4. Industrial (in some states):
- Small and medium industries
- Manufacturing units
- Warehouses
Basic eligibility criteria (most states):
- Must have an active electricity connection
- Should be the owner or authorised tenant of the premises
- Rooftop/land should be structurally suitable for solar installation
- System capacity should not exceed the sanctioned load (or a specified limit like 100% or 90% of the sanctioned load)
Who is NOT eligible:
- Consumers with outstanding dues beyond a certain limit
- Consumers in areas with transmission constraints (transformer capacity issues)
- Agricultural consumers (different metering policies apply in most states)
- Consumers who previously had net metering and violated regulations
Net Metering Transformer Capacity Limit Explained
This is technical but crucial—and a common reason for rejection.
The concept:
Every locality is served by a distribution transformer. This transformer has a rated capacity (like 100 kVA, 250 kVA, etc.). DISCOMs limit the total solar capacity connected to each transformer to prevent:
- Voltage fluctuations
- Reverse power flow issues
- Transformer overloading during peak solar hours
Typical state regulations:
- Karnataka: Total solar capacity on a transformer should not exceed 80% of transformer capacity
- Maharashtra: 70% limit
- Gujarat: 75% limit
- Tamil Nadu: 50% of transformer capacity or individual system not exceeding 1 MW
- Delhi: Generally no hard limit, but case-by-case approval for larger systems
Real example:
Let’s say your area has a 100 kVA transformer serving 20 homes. If the limit is 70%, only 70 kVA worth of solar can be installed across all these homes.
- 1 kW solar ≈ 1 kVA (approximately)
- If 5 homes have already installed 10 kW each = 50 kVA used
- Remaining capacity: 20 kVA
- Your 5 kW system: Usually fine
- Your 25 kW system: Might be rejected due to insufficient transformer capacity
How to check before applying:
- Ask your installer to check transformer capacity (they should know this)
- Visit your local DISCOM office and request transformer loading data
- Talk to neighbors who have solar—they might know
What happens if capacity is insufficient:
- Your application gets put on hold
- DISCOM might require transformer upgrade (costly, time-consuming)
- You might need to reduce your system size
- You might be asked to wait until capacity frees up
[Visual suggestion: Infographic showing transformer capacity limits and calculations]
Apartment & Housing Society Net Metering Eligibility
This is where it gets tricky.
Scenario 1: Individual meters in apartments
If your apartment has its own separate meter (not a common meter for the building), you can apply for net metering just like an independent house.
Requirements:
- Proof that you own/rent the specific unit
- Rooftop usage permission from society/builder
- Confirmation that your meter is independent
Scenario 2: Group net metering
Some states allow a group of flats in a building to share a common solar installation.
How it works:
- Society installs a common solar system
- Solar power is virtually allocated to participating members based on their agreed share
- One net meter for the entire system
- Individual bills reflect their allocated share
States with group net metering policies:
- Karnataka (under consideration)
- Maharashtra (available)
- Gujarat (available with limitations)
- Haryana (available)
Scenario 3: Virtual net metering
This is even more advanced—you can own a solar system installed elsewhere (like on the society’s rooftop or even a different location) and get credits on your individual meter.
Availability: Very limited. Only a few states have clear virtual net metering frameworks (Maharashtra has piloted this).
Reality check for apartments:
The biggest challenge isn’t eligibility—it’s rooftop permission. Most societies refuse rooftop access to individual members due to:
- Maintenance concerns
- Aesthetic objections
- Liability issues
- Lack of clear society-level policies
My advice for apartment dwellers:
- Check if your society already has a group solar policy
- Convince your society committee to install a common solar system
- If you’re on the top floor, negotiate individual permission
- Consider ground-mounted systems if you have dedicated parking/open space
[Internal link opportunity: Apartment solar installation guide page]
Can Net Metering Be Rejected? Common Reasons
Yes, absolutely. Here are real rejection reasons:
1. Inadequate transformer capacity:
As discussed above, if the transformer serving your area is already loaded, your application might be rejected or put on indefinite hold.
2. System capacity exceeds sanctioned load:
If your electricity connection is for 5 kW but you want to install a 10 kW solar system, many states will reject it. The logic: You can’t export more than you’re sanctioned to import.
3. Rooftop ownership issues:
If you’re a tenant and cannot provide landlord’s consent, or if there’s a legal dispute over property ownership, DISCOM will reject your application.
4. Non-compliance with technical standards:
If your solar installation doesn’t meet IS/IEC standards, uses non-approved equipment, or has safety violations, inspection will fail.
5. Outstanding electricity dues:
Most DISCOMs have a clause: If you have unpaid bills beyond a certain amount (often ₹5,000 or 2 months’ bills), your net metering application will be rejected until you clear dues.
6. Incomplete or fraudulent documentation:
Fake installer certificates, tampered bills, forged signatures—instant rejection plus potential legal action.
7. Location-specific restrictions:
Some heritage zones, defense areas, or ecologically sensitive areas have restrictions on rooftop installations. If your property falls in such zones, rejection is possible.
8. Policy changes (rare but real):
In 2023, some Rajasthan DISCOMs temporarily stopped accepting new net metering applications, pushing consumers toward gross metering instead. Such policy shifts can block your application.
What to do if rejected:
- Understand the specific reason (ask for written explanation)
- Rectify the issue if possible (upgrade docs, reduce system size, clear dues)
- Reapply after rectification
- If rejection seems unfair, file a grievance with CGRF
Net Metering vs Gross Metering — Which Is Better for Homes?
This debate is heating up as some states shift policies.
What Is Gross Metering (And Why Some States Push It)
Gross metering works differently:
- ALL the power your solar panels generate goes directly to the grid (not your home first)
- You’re paid a fixed feed-in tariff (FiT) for every unit generated
- Simultaneously, you continue to buy electricity from the grid at retail rates for your consumption
- Two separate meters: one for generation, one for consumption
Example:
- Your solar system generates 500 units/month
- You’re paid ₹3/unit for generation = ₹1,500 credit
- Your home consumes 400 units/month
- You pay retail rate, say ₹6/unit = ₹2,400 bill
- Net cost: ₹2,400 – ₹1,500 = ₹900
Compare this with net metering:
- Generate 500, consume 400
- Net consumption: 400 – 500 = -100 (surplus)
- Bill: mostly fixed charges, surplus carries forward
- Significantly lower cost
Why some states are pushing gross metering:
- DISCOM revenue protection: Net metering reduces their sales significantly. Gross metering maintains revenue flow.
- Grid stability argument: They claim it’s easier to manage grid stability when solar export is predictable.
- Cross-subsidy concerns: Retail tariffs include cross-subsidies. When consumers pay less through net metering, it affects subsidy calculations.
States where gross metering is mandatory or being pushed:
- Rajasthan (for systems >10 kW, and some DISCOMs prefer it even for smaller systems)
- Andhra Pradesh (gross metering for new commercial installations)
- Some parts of Uttar Pradesh (case-by-case basis)
Net Metering vs Gross Metering: Bill Impact Comparison
Let me show you the math with a real example:
Assumptions:
- 5 kW solar system
- Generates 600 units/month average
- Home consumption: 450 units/month
- Retail tariff: ₹6.50/unit
- Gross metering FiT: ₹2.50/unit (typical)
Scenario A: Net Metering
- Units exported: 600 units
- Units imported: 450 units
- Net: 150 units surplus (carries forward)
- Monthly bill: Fixed charges only (≈ ₹200)
- Annual electricity cost: ₹2,400 (fixed charges only)
Scenario B: Gross Metering
- Solar generation payment: 600 units × ₹2.50 = ₹1,500
- Consumption charges: 450 units × ₹6.50 = ₹2,925
- Net monthly cost: ₹2,925 – ₹1,500 = ₹1,425
- Annual electricity cost: ₹17,100
The difference: ₹14,700 per year—just by being on net metering vs gross metering.
Over 25 years (solar panel life): ₹3,67,500 additional cost with gross metering.
[Visual suggestion: Side-by-side bill comparison chart for 1 year]
Which Is Better for Indian Homes in 2025?
For the consumer, net metering is overwhelmingly better—IF it’s available.
When net metering makes sense:
- Your state/DISCOM offers it
- You want maximum savings
- Your consumption pattern is suitable (use electricity mostly in evenings/nights when panels aren’t generating)
When gross metering might be acceptable:
- Net metering isn’t available in your area
- You have very high daytime consumption (factories, commercial establishments)
- The FiT offered is reasonably high (₹4-5/unit or more)
For most residential users: Net metering is the only financially viable option. Gross metering at current FiT rates (₹2-3/unit) simply doesn’t make economic sense given the 15-25 year payback period.
Policy Risk: Will Net Metering Be Phased Out?
This is the uncomfortable question everyone should ask.
The reality: Some states are already restricting net metering for new installations or larger capacities. The trend globally (California, parts of Europe) is toward reduced net metering benefits.
Why this might happen in India:
- DISCOM financial stress
- Grid management challenges as solar penetration increases
- Cross-subsidy rebalancing pressures
- Influence of utility lobbying
What could change:
- Lower FiT for surplus units at year-end
- Time-of-day net metering (different rates for peak/off-peak export)
- Caps on system capacity eligible for net metering
- Gradual shift to gross metering for new installations
My advice:
If you’re planning solar, do it now while net metering is available. Once you’re on net metering, you’re typically “grandfathered in”—meaning policy changes don’t affect existing consumers for 20-25 years (the PPA duration).
[External link suggestion: Link to recent news articles about net metering policy changes in India]
Common Net Metering Application Mistakes (And How to Avoid Them)
Let me share the mistakes I see repeatedly—and some I made myself.
Incomplete or Incorrect Documents
The mistake:
- Submitting blurry scans
- Missing signatures
- Using outdated form versions
- Not attaching all required documents
The consequence: Application rejection, 15-30 day delay while you resubmit.
How to avoid:
- Download the latest forms from your DISCOM’s website (not from random blogs or old PDFs)
- Create a checklist from DISCOM’s requirements page
- Scan documents clearly in color (not black-and-white)
- Get all signatures before scanning
- Keep physical copies ready for any additional requests
- Submit online if possible (creates automatic acknowledgment)
Pro tip: Many DISCOMs now have document verification features on their portals. Upload your docs and check if they pass automated validation before submitting.
Choosing the Wrong System Size
The mistake: Installing a system that’s too large for your actual consumption, thinking “bigger is better.”
Why it’s a problem:
- Higher upfront cost with diminishing returns
- Potential transformer capacity issues
- Might exceed sanctioned load limits
- Surplus units at year-end often paid at very low rates
Real example: A friend installed 10 kW assuming his consumption would grow. Two years later, he’s still generating 50% more than he uses. That excess 1,200 units/month? Paid at ₹1.20/unit at year-end instead of retail ₹6.50. He’s effectively wasting ₹6,000/month in potential savings.
How to avoid:
- Analyze your electricity bills for the last 12 months
- Calculate average monthly consumption
- Size your system to generate 90-100% of your consumption, not 150%
- Account for future consumption growth conservatively (10-15% over 5 years, not 50%)
- Consult multiple installers for recommendations
Rule of thumb: 1 kW solar generates approximately 120-150 units/month in most Indian climates.
[Internal link opportunity: Solar system sizing calculator tool]
Not Checking Transformer Capacity Early
The mistake: Installing the entire system first, then applying for net metering, only to discover transformer capacity is insufficient.
The consequence:
- System is installed but can’t be activated
- Money blocked
- Potential need to downsize or wait indefinitely
- Installer might have already been paid
How to avoid:
- Check transformer capacity before signing any installer contract
- Ask your installer to do a site feasibility assessment
- Visit DISCOM office or call their technical department
- Talk to neighbors with solar about their experience
What to ask:
- “What is the transformer capacity serving my area?”
- “How much solar capacity is already connected?”
- “Is there capacity available for my proposed system size?”
Get it in writing: If DISCOM confirms capacity is available, ask for written confirmation or at least an email. This protects you if they later deny your application.
Relying Blindly on Installer Promises
The mistake: Trusting verbal assurances like “we’ll handle everything” or “approval in 15 days guaranteed” without understanding the process yourself.
Why it’s risky:
- Installers want to close the sale—they might downplay challenges
- They’re not liable for DISCOM delays
- Some installers are inexperienced with net metering in your specific DISCOM area
- You’re left helpless if something goes wrong
Real scenario: An installer assured a customer that “net metering is just a formality” in their area. Three months later, DISCOM rejected the application due to transformer issues. The installer had never checked. Customer now stuck with a non-functional system.
How to protect yourself:
- Ask installers for references—talk to their previous customers about net metering experience
- Verify installer’s certifications and DISCOM empanelment
- Understand the net metering process yourself (you’re doing that now!)
- Include net metering timelines and responsibilities in your contract
- Never pay 100% upfront—tie final payment to net metering activation
Contract clause suggestion: “Final 15% payment will be released only after successful net meter installation and activation by DISCOM. If net metering is not approved within 60 days of application due to installer error or oversight, a full refund of advance payment.”
[Internal link opportunity: How to choose a reliable solar installer guide]
Frequently Asked Questions on Solar Net Metering India
How long does net metering approval take in India?
Officially, most states mandate 30-45 days from application to meter installation. In practice:
- Metro cities with digital processes: 25-40 days
- State capitals: 35-55 days
- Smaller towns: 50-90 days
Peak season (Jan-April) adds 10-20 days. My approval took 38 days in Bangalore.
Can I use net metering without a subsidy?
Yes, absolutely. Net metering and solar subsidy are independent. You can:
- Install solar without claiming any subsidy
- Apply for net metering normally
- Start saving on bills immediately
Not claiming a subsidy actually speeds up the process since you avoid subsidy verification delays. The only downside: higher upfront cost.
Is net metering available in all states?
Net metering is available in all major states, but policies vary:
- Full net metering: Most states, including Karnataka, Maharashtra, Delhi, Gujarat, Tamil Nadu, Haryana
- Gross metering mandatory: Parts of Rajasthan, Andhra Pradesh, for certain categories
- Limited availability: Some northeastern states, remote areas with a weak grid
Check your specific DISCOM’s website for the current policy.
[External link suggestion: State-wise net metering policy comparison from MNRE or CEA]
Can I add batteries later with net metering?
Yes, you can add batteries to an existing net metering system. This creates a “hybrid” setup:
- During the day, Solar powers the home, excess goes to the grid
- During outages: Battery provides backup
- At night: If the battery is charged, use it first; otherwise, import from the grid
Important: Inform your DISCOM about the battery addition. Some states require system re-inspection.
What happens if net metering is rejected?
If rejected, you have options:
- Understand the rejection reason (request written explanation)
- Rectify the issue and reapply
- File a grievance with DISCOM’s nodal officer
- Escalate to Consumer Grievance Redressal Forum (CGRF)
- Approach Electricity Ombudsman if needed
Most rejections are due to technical/document issues that can be fixed.
Is net metering better than inverter battery backup?
For savings: Net metering is far superior (no battery cost, no replacement) For backup: Battery wins (works during power cuts)
Choose net metering if:
- Grid is stable in your area
- Priority is maximum savings
- You’re okay with no backup during outages
Choose battery if:
- Frequent power cuts
- Need guaranteed backup
- Can afford higher upfront and replacement costs
Many people now go hybrid: Net metering + small battery backup for essentials.
Does net metering expire?
Net metering agreements typically last 20-25 years (aligned with Power Purchase Agreement duration). After that, you need to renew, but this is usually straightforward.
Annual maintenance: The agreement doesn’t expire, but meters may need periodic testing/calibration (every 2-5 years depending on state).
Can apartments get net metering?
Yes, if you have:
- Individual meter: Apply like any independent house
- Society permission: For rooftop usage
- Group net metering: Some states allow societies to install common systems
The challenge is usually getting society approval, not DISCOM eligibility.
What is the maximum solar capacity allowed?
This varies by state:
- Residential: Typically up to sanctioned load or 10 kW (whichever is lower)
- Commercial: Often up to 1 MW
- Industrial: Some states allow higher (case-by-case)
Some states allow larger systems under gross metering.
Example: In Karnataka, residential net metering is allowed up to the sanctioned load limit. If your connection is 5 kW, you can install up to 5 kW solar.
Will DISCOM change net metering rules later?
For existing consumers: Usually no. Once you’re on net metering, you’re typically grandfathered in for 20-25 years. Policy changes apply to new applications.
Exception: Some states reserve the right to modify terms during “unforeseen circumstances” or if regulations change at central level.
My advice: Read your net metering agreement carefully. Most have a clause protecting existing consumers from policy changes. But there’s always some risk with long-term government policies.
Conclusion: Should You Choose Solar Net Metering in India?
After walking you through every aspect of solar net metering in India, here’s what it comes down to:
Net metering makes sense when:
- You have stable grid connectivity
- Your DISCOM offers favorable net metering terms (not gross metering)
- Your monthly bill is ₹2,000+
- You’re planning to stay in the same property for 7+ years
- Transformer capacity is available in your area
Net metering might not be right if:
- You face frequent, long power cuts (battery backup is better)
- Your DISCOM has shifted to gross metering with low FiTs
- You’re in a rented property or might relocate soon
- Your transformer capacity is exhausted
- Your consumption is very low (payback period too long)
The 12 truths I wish I knew before starting:
- Net metering approval takes longer than installers promise
- Costs go beyond just the solar system
- Transformer capacity can block your application
- Not all states have consumer-friendly net metering policies
- Document errors cause the most delays
- Apartment solar needs society permission (hardest part)
- Excess units at year-end are paid at very low rates
- Fixed charges never go away, even with net metering
- The right system size is based on consumption, not rooftop area
- Policy changes are real—apply sooner than later
- Your installer isn’t liable for DISCOM delays
- Net metering is still the best ROI option for most Indian homes
My final recommendation:
If you meet the eligibility criteria and your state offers true net metering (not gross), go for it—but do it informed. Understand the process, check transformer capacity, choose the right installer, size your system correctly, and prepare for a 30-60 day approval journey.
Solar with net metering has saved me over ₹40,000/year. That’s ₹10 lakhs over 25 years. Few investments offer that kind of return with zero ongoing effort.
Just don’t go in blind.
🔔 Ready to Start Your Solar Journey?
Check your net metering eligibility: Use our state-wise eligibility checker to see if your area supports net metering and what transformer capacity is available.
Calculate your solar savings: Try our net metering savings calculator to see exactly how much you’ll save monthly and over 25 years.
Compare verified solar installers: Get quotes from 3-4 certified installers in your city. Don’t commit to the first one.
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